KPHL to consult State on vendor financing

By SHIRLEY MAULUDU
KUMUL Petroleum Holdings Limited (KPHL) will consult the Government, its sole shareholder, on whether to reconsider its decision to  withdraw the vendor financing option regarding the Kroton equity.
Managing director Wapu Sonk said this in response yesterday to a decision by governors of the five provinces impacted by the PNG LNG project to take up KPHL’s vendor financing offer.
The governors agreed to take up the option based on an independent assessment carried out by Clinton Capital Partners.
The firm is an Australian company that specialises in providing investment opportunities and solutions to wholesale investors, and advisory, investment and capital raising solutions to corporate clients.
It carried out the assessment on different options, including vendor financing.
Early this month, KPHL announced its decision to withdraw the option.
According to KPHL, a few groups emerged claiming to represent landowners and provincial governments and had expressed a strong desire to do the financing themselves.
As such, KPHL decided to withdraw the option.
“The option’s withdrawal was a shareholder decision so KPHL will consult its shareholder and advise on the response,” Sonk told The National.
“However, we are happy that there is some light at the end of the tunnel and we wish to congratulate the governors for taking independent advice and verifying what KPHL has offered against other proposals or options.”
The governors for Hela, Southern Highlands and Central announced that although they agreed to go with vendor financing, other options may also be considered if viable.
The beneficiary groups were given until the end of December to exercise the option for the Kroton equity.